Possible tax shock on cars, says NAF

On New Years Day, the EU introduces a revised method for measuring car emissions. – This in short entails that cars that emit the same as before will be given a tax hike, unless the Government takes action, says Communications Manager in the Norwegian Car Owners Association (NAF), Nils Sødal.

NAF is working to avoid that car buyers picks up the when EU introduces a revised method for measuring car emissions. In Denmark, Sweden and Finland, the Governments have announced measures that ensure that car buyers are not affected by the abrupt hike in the fees. In Norway it is however quiet.

– We fear that the Government wishes that the consumers fork out for everything, says Sødal.

Larger emission = higher fee

The reason for the concern is that the EU is in the process of introducing an altered measurement method for emissions and fuel consumption. All new car models must go through this test. The measurement method, called WLTP, is more precise than the one previously used and therefore a car’s emission figures will be higher in most cases. In Norway, the one-off fee is largely based on this emission figure.

The first step in the transition will be implemented on September 1st this year. Then the fees for a number of car models will increase. The change can mean up to 15 per cent higher emissions. It can amount to anywhere from NOK 10 – 30 000 in additional fees.

NAF is worried that the fee increase from September 1st is the first stage of a two-stage rocket.

NOK 80,000 on normal family cars

As of January 1st, 2019, taxes can increase even more. If the Government does not make a major adjustment, the measured figures will entail that consumers have to pay as much as NOK 80,000 more when they buy a car.

– As of New Year’s Day, WLTP can become a real tax bomb. NAF has a clear demand from the Government; they must look to the other Nordic countries and put a transitional arrangement in place that does not affect most Norwegians. So far, it has been quiet from the Government offices about what they intend to do about the car fees. This means that anyone who orders a car to be delivered, after New Years Day, does not know how much it will cost them in the end, says Sødal.

Facts on WLTP

WLTP stands for the Worldwide Light vehicles Test Procedure and is a measurement method for car emissions that is introduced by EU.

The Norwegian purchase fee (one-time fee) is related to the amount of CO2 the car releases. Higher emission figures will lead to increased fees for a number of car models – including cars that are pre-ordered.

As of January 1st, 2019, all imported cars will be type approved and have their purchase fees calculated by use of WLTP. A transitional arrangement will come into force from September 1st.

The Danish Government has proposed a 21 per cent reduction in the calculated fees.

The Swedish Government introduces the first stage of the changes only, and that they will continue even in 2019.

The Finns have adopted a 25 per cent reduction in the emission figures, and are open for reducing further if is necessary.

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